Crypto Market Highlights: LIBRA Scandal Explodes as Argentina Launches Full-Scale Probe

In a stunning twist that’s shaking the global crypto community, Argentina’s Congress has officially launched an inquiry into the LIBRA memecoin collapse, which left nearly 75,000 retail investors burned and over $280 million in value wiped out. The political and financial fallout has taken a serious turn, with high-ranking officials now being summoned to explain their role—or lack thereof—in the debacle.

During a tense special session on April 8, Argentina’s Chamber of Deputies passed three resolutions to uncover the truth behind what is rapidly becoming one of Latin America’s largest crypto scandals to date. The move includes forming a formal investigative commission, compelling testimony from key government figures, and demanding full disclosure of the executive branch’s involvement in LIBRA’s promotion.

A Memecoin, A President, and A Market Crash

It all started on February 14, when Argentine President Javier Milei publicly endorsed LIBRA on X (formerly Twitter), calling it a revolutionary tool to “boost the Argentine economy.” Investors, sensing a government-backed moonshot, poured in. Within hours, LIBRA surged by a mind-blowing 3,000%—only to crash by 90% the same day when Milei deleted the tweet and distanced himself from the project entirely.

While Milei’s administration claimed the endorsement was merely “routine support for entrepreneurship,” the damage had already been done. Behind the scenes, investigations are now revealing something far more sinister.

Insiders Allegedly Made Millions Before the Crash

The real bombshell came when it was discovered that entities like Kelsier Ventures and affiliated developers may have manipulated the token’s liquidity, profiting more than $110 million in the process. Insiders allegedly withheld 85% of the token’s supply, allowing them to dominate the market and dump tokens during the early price spike.

This revelation triggered a wave of lawsuits—including a class-action case filed on March 18 in New York by Burwick Law against Kelsier Ventures, KIP Protocol, and Meteora. The suit accuses the firms of deceptive practices, liquidity manipulation, and fraud, claiming that unsuspecting retail investors were lured in with false promises while the trap was being set.

Political Backlash Hits President Milei

The scandal has now rocked the Milei administration, with opposition lawmakers accusing the President of betraying the very anti-corruption values he campaigned on. The Chamber of Deputies has voted to summon top government officials—including the Chief of Staff, Economy Minister, and Justice Minister—for questioning under oath. The National Securities Commission is also under scrutiny for its apparent regulatory inaction.

As the investigation unfolds, there are growing calls for transparency and accountability, especially with midterm elections looming later this year. Civic Coalition lawmaker Maximiliano Ferraro summed up the sentiment best: “Society has the right to know the truth.”

What Happens Next?

The newly formed investigative commission is now tasked with exposing the full chain of events—from token development and insider access to the government’s public promotion. The LIBRA fallout isn’t just about lost money; it’s becoming a referendum on government oversight, crypto ethics, and investor protection in a rapidly evolving financial landscape.

If the commission confirms that key players in government or finance helped orchestrate or enable this collapse, Argentina could be facing an even bigger political reckoning than anticipated.

Stay tuned—because this story is just getting started.